Allianz Life Insurance Company of North America P For financial professional use only. Not for use with the public. Allianz Life Pro+ Fixed Index Universal Life Insurance Policy Agent guide M-5345 Page of 6
Allianz Life Pro+ fixed index universal life insurance. It s life insurance that goes beyond just life insurance. Your clients have a variety of financial needs they must fund simultaneously. One of the most important is providing for their beneficiaries in the event of an early death. But Allianz Life Pro+ Fixed Index Universal Life Insurance Policy does more than that it also provides the opportunity for cash value accumulation based on indexed interest and chosen crediting method that can be accessed in the future through policy loans and withdrawals. Typical client concerns: Income replacement in the event of premature death Access to funds for future needs Continuing their current lifestyle in retirement Outliving retirement savings Supplementing a college funding strategy Helping to keep pace with tomorrow s inflation Maintaining their lifestyle in the event of a chronic illness Strategies for the continuation of a business Allianz Life Pro+ offers protection for life, for cash value accumulation potential, and for purchasing power. It provides: An income-tax-free death benefit for beneficiaries The potential to build cash value on a tax-deferred basis to supplement retirement income or other financial needs. The cash value will never decrease due to market volatility (although fees and expenses, including any applicable surrender charges, will reduce the cash value). Access any available cash value of the policy incometax-free via policy loans Optional protection of the purchasing power of the loan amount from the eroding effect of inflation (rider is available at an additional cost) Flexibility in how much premium is paid and when it s paid (as long as certain criteria are met) Policy loans and withdrawals will reduce the available cash value and death benefit and may cause the policy to lapse, or affect guarantees against lapse. Additional premium payments may be required to keep the policy in force. In the event of a lapse, outstanding policy loans in excess of unrecovered cost basis will be subject to ordinary income tax. Tax laws are subject to change and your clients should consult a tax professional. Page 2 of 6
Key product benefits Issue ages 0-80 Risk classes Nontobacco (ages 8-80) Preferred Plus Nontobacco Preferred Nontobacco Standard Nontobacco (Standard rates apply through Table 2) Tobacco (ages 8-80) Preferred Tobacco Standard Tobacco (Standard rates apply through Table 2) Juvenile (ages 0-7) Risk classes are assigned based on insurance risk as determined through the underwriting process. Lifestyle Credits Program Death benefit $00,000 is the minimum death benefit on the primary insured. $50,000 is the minimum increase in death benefit on the insured. $65,000,000 is the maximum death benefit on the insured (subject to limitations). Internal retention and autobind limits: 2 Please call the Life Case Design Team at 800.950.7372 (press for Sales Support, then 2 for Life). Please call our life underwriters if your client is over age 70, or has a rating above Table 4, is a professional athlete, is in the entertainment industry, or participates in private aviation. Premium bands $00,000-$299,999 $300,000-$499,999 $500,000-$999,999 $,000,000+ Risk class change is available at age 8 subject to current evidence of insurability. 2 Death benefits greater than our internal retention, autobind, or jumbo limits will need reinsurance consideration. Page 3 of 6
Death benefit options Death benefit option A (level): The death benefit will be equal to the specified amount less any partial surrenders or outstanding policy loans. Death benefit option B (increasing): The death benefit will be equal to the specified amount plus the accumulation value less any partial surrenders or outstanding policy loans. Death benefit option C (return of premium): The death benefit is equal to the specified amount plus the premium that is paid into the policy less any partial surrenders or outstanding policy loans. Only available at issue, and cannot be changed to option B. Tax compliance test The test must be chosen at time of application and cannot be changed after issue: Guideline premium test Cash value accumulation test Minimum premium Based on age, gender, risk class, death benefit, and riders, but never less than $25/month or $300/year Premium Deposit Fund Rider The Premium Deposit Fund (PDF) Rider combined with Allianz Life Pro+ provides all of the tax advantages of life insurance with the simplicity of a single lump-sum payment. Your client submits a lump-sum amount to the PDF and we automatically transfer the annual planned premium payments into the life insurance policy. Your clients will receive the current Premium Discount Rate as the premium is transferred from the PDF into the life insurance policy 2 which means that their out-of-pocket premium is discounted. At age 20 When the insured turns 20, the death benefit equals the accumulation value. All loans will be allocated to the fixed allocation and will be charged the preferred loan rate. No premium will be accepted after age 20, unless it s necessary to keep the policy in force, or is a loan repayment, and no deductions or charges will be assessed after the insured reaches age 20. Survivor benefit The death benefit increases by 0% if the beneficiary(ies) choose to take policy proceeds over a period of 0 years or longer. The death benefit increase may be taxable. Death benefit settlement provisions Option A: Installments for a guaranteed period of five to nine years Option B: Installments for a guaranteed period of 0 to 30 years Option C: Installments for life with a guaranteed period of five to 30 years Option D: Installments of a selected amount for five to nine years Option E: Installments of a selected amount for 0 years to 30 years Option F: Joint and survivor Minimum number of planned premium transfers is three, and the maximum number of premium transfers is 0. 2 2 The Premium Discount Rate is guaranteed on an annual basis and will never be less than 0.25%. It does not apply to first-year premium. Page 4 of 6
Access to the cash value Access to the death benefit ALLIANZ LIFE PRO+ provides the policyholder flexibility and access to the potential cash value while the insured is living. There are several ways to access the policy s potential cash value accumulation without incurring surrender charges: Standard loan: During the first 0 policy years, a loan may be taken against a fixed interest allocation at any time, typically for a low net % cost. The policy charges 2.9% in advance each year, then credits back 2% at the end of each year the loan is outstanding. Preferred loan:,2 After the first 0 policy years, a loan may be taken against the fixed interest allocation any time, typically for a net 0% cost. The policy charges 2.53% in advance each year, then credits back 2% at the end of each year the loan is outstanding. The 2% credit, plus the 0.6% accumulation bonus, will result in a net cost of 0%. Indexed loan: This type of loan offers competitive loan amounts with an interest rate that s locked in at purchase of policy and won t change. The policy s cash value can still receive indexed interest when an indexed loan is taken. At the time the loan is taken, interest is payable in advance and is deducted from the cash value. The loan amount continues to earn indexed interest. The interest charge of the loan can be reduced by the potential credited indexed interest, but there is no guarantee the policy will earn indexed interest. Partial withdrawal: A partial withdrawal (or partial surrender ) from the policy may be requested if the need arises. Partial withdrawals reduce policy values (including the death benefit) and may be subject to a maximum charge of $50. Partial withdrawals could also affect the death benefit guarantee. Full surrender: If the request of a full surrender occurs during the policy s surrender period (0 years), a full surrender charge will apply. The surrender charge is based on age, gender, risk class, and death benefit amount. Terminal Illness Accelerated Benefit: If the insured is diagnosed with a terminal illness that results in a life expectancy of 2 months 3 or less, 00% of the policy s death benefit (up to $ million) is available while the insured is still alive. The insured will receive a payment at the time it is taken equal to the accelerated benefit amount discounted for one-half year s interest using the 2% preferred loan rate. This benefit is subject to eligibility conditions that may vary by state. Receipt of benefits may be taxable, and your client should consult their tax advisor. Chronic Illness Accelerated Benefit Rider: 4,5,6 Subject to certain age and underwriting requirements, this rider may be included with your client s policy at the time it is issued. The Chronic Illness Accelerated Benefit Rider allows the policy owner to accelerate the death benefit if the insured becomes chronically ill or cognitively impaired (under specific criteria). For detailed information on the Chronic Illness Accelerated Benefit Rider, which is subject to eligibility conditions that may vary by state, please refer to the agent guide (M-566). Guarantees 0-year death benefit guarantee: If the required minimum premium is paid for the first 0 policy years, and no policy loans or withdrawals are taken, the policy is guaranteed not to lapse. Depending upon the age, gender, and risk classification of the insured this may exceed 0 years. For your client s exact situation, please refer to their illustration. Guarantees are backed by the financial strength and claims-paying ability of Allianz Life Insurance Company of North America (Allianz). Policy loans and withdrawals will reduce the available cash value and death benefit and may cause the policy to lapse, or affect guarantees against lapse. Additional premium payments may be required to keep the policy in force. In the event of a lapse, outstanding policy loans in excess of unrecovered cost basis will be subject to ordinary income tax. Tax laws are subject to change and your clients should consult their tax professional. 2 A guaranteed annual bonus of 0.6% will be credited to the policy s accumulation value starting in policy year. The bonus will be credited to the accumulation value starting on the first monthly anniversary after the 0th policy anniversary and every monthly anniversary after that. 3 The number of months varies by state. 4 The Chronic Illness Accelerated Benefit Rider is available at an additional cost at the time the rider is exercised. If the rider is not exercised, there is no additional cost. The cost is based on age, gender, risk class, current cash value, and current discount factor interest rate at the time of acceleration. The rider is not available in all states. 5 In Ohio, the rider is called the Chronic Illness Accelerated Death Benefit Rider and is not available if the insured is under age 8. 6 In New Jersey, the Chronic Illness Accelerated Benefit Rider will not be available for an applicant who already has an existing Chronic Illness Accelerated Benefit Rider issued by Allianz Life Insurance Company of North America. 3 Page 5 of 6
Interest crediting Allianz Life Pro+ allows several crediting choices. Each offers benefits and potential drawbacks that the policyholder should consider before they make a choice. Index allocations Your clients may select options in increments of % and change selections on every policy anniversary. Their index options are: S&P 500 Index Barclays US Dynamic Balance Index II Barclays US Dynamic Balance Index II with annual floor Blended index Dow Jones Industrial Average (35%) Barclays US Aggregate Bond Index (35%) EURO STOXX 50 Index (20%) Russell 2000 Index (0%) Blended index with annual floor Their crediting method options are: 2 Annual point-to-point Trigger method Monthly average Monthly sum For detailed information on the crediting methods and how they work, please refer to the descriptions in this guide. Availability of index allocations and crediting methods may vary by state. Crediting methods Annual point-to-point: This method tracks changes in an index from one policy anniversary to the next. There are several variations available that have either a cap or participation rate, and may have an annual floor. With a positive change in the index from the previous year, a cap or participation rate may be applied and can affect how much indexed interest would be credited to the policy. With a negative change in the index from the previous year, the indexed interest for that year would be zero or equal to the annual floor, if applicable. Indexed interest would also equal the annual floor if the positive change in the index is less than the annual floor. Each of the current caps, participation rates, and annual floors is subject to change on an annual basis and each has a guaranteed minimum rate. Annual point-to-point with a cap minimum cap 0.50% Annual point-to-point with a cap and annual floor minimum cap 0.50%, minimum annual floor 0.5% Annual point-to-point with a participation rate minimum participation rate 5% Annual point-to-point with a participation rate and annual floor minimum participation rate 5%, minimum annual floor 0.5% Trigger method: The trigger method is only available with the S&P 500 Index allocation. It tracks changes in the S&P 500 Index from one policy anniversary to the next. Any change greater than or equal to zero would result in the current Trigger Interest Rate credited to the policy, which is subject to change on an annual basis and is guaranteed to not go below 0.50%. In years when the index performance is greater than the Trigger Interest Rate, the potential indexed interest credited to the policy would be capped at the current Trigger Interest Rate. If the result is negative (less than zero), 0% would be credited to the policy. In Indiana, Oregon, and Pennsylvania, if the index return is negative, % would be credited to the policy. Monthly average: With this method, we track the monthly index values. At the end of the policy year, we add up those index values and divide them by 2 to determine the average. We then subtract the starting index value from the average to determine the amount of positive or negative change in the index. This amount is divided by the starting value to determine the percentage of annual change. If the results are negative, indexed interest for that year would be zero. A positive result is multiplied by the participation rate to determine the indexed interest rate. Allianz will establish the participation rate at issue and on each policy anniversary. This participation rate is guaranteed to never be less than 5%. 4 May not be available in all states. 2 Not all crediting methods are available with every index allocation. Page 6 of 6
Monthly sum: Every month, the company tracks the positive and negative monthly changes in the market index(es). Each positive monthly change is subject to a cap while the negative monthly change is not subject to a cap. At the end of each year, the 2 monthly changes are added up and, if positive, the total would be credited to the policy. If the total is negative, the indexed interest for that year would be zero. The cap is subject to change on an annual basis and is guaranteed to never be less than 0.50%. The participation rate is guaranteed to be at least 00% over the life of the policy. Fixed interest: This is our most conservative interest option. If this option is chosen, the policyholder s money will earn interest at a predictable fixed rate, with a guaranteed minimum interest rate of 0.%. For the current rates, caps, floor, and participation rates, please refer to the current Allianz Life Rate Watch, which can be found at www.allianzlife.com or by calling the Life Case Design Team at 800.950.7372 (press for Sales Support, then 2 for Life). Crediting method and index availability Annual point-to-point Index available Cap Participation rate S&P 500 Index Yes Annual cap 00% Blended index Yes Annual cap 00% Blended index with annual floor Yes Annual cap 00% Barclays US Dynamic Balance Index II Yes N/A Current participation rate Barclays US Dynamic Balance Index II with annual floor Yes N/A Current participation rate Trigger method Index available Trigger Interest Rate Cap Participation rate S&P 500 Index Yes Yes N/A N/A Blended index No No N/A N/A Blended index with annual floor No No N/A N/A Barclays US Dynamic Balance Index II No No N/A N/A Barclays US Dynamic Balance Index II with annual floor No No N/A N/A If the S&P 500 Index annual change is greater than or equal to 0%, the current Trigger Interest Rate would be credited. If the annual change is less than 0% the policy would be credited 0%. The Trigger Interest Rate is guaranteed on an annual basis with a minimum guaranteed Trigger Interest Rate of 0.5%. In Pennsylvania, Indiana, and Oregon, if the S&P 500 Index annual change is less than 0%, % interest would be credited. Monthly sum Index available Cap Participation rate S&P 500 Index Yes Monthly cap 00% Blended index No N/A N/A Blended index with annual floor No N/A N/A Barclays US Dynamic Balance Index II No N/A N/A Barclays US Dynamic Balance Index II with annual floor No N/A N/A Monthly average Index available Cap Participation rate S&P 500 Index No N/A N/A Blended index Yes N/A Current participation rate Blended index with annual floor No N/A N/A Barclays US Dynamic Balance Index II No N/A N/A Barclays US Dynamic Balance Index II with annual floor No N/A N/A 5 Page 7 of 6
Annual reset Indexed interest will be credited and locked in on each policy anniversary. At the end of each year, the ending index value becomes the next year s starting value. Participation rates The amount of indexed interest the policy can earn may be limited by a participation rate. If the monthly sum or annual point-to-point crediting methods are chosen, which include caps on indexed interest, Allianz will guarantee at least a 00% participation rate over the life of the policy. If the monthly average crediting method is chosen, Allianz will establish the participation rate on each policy anniversary. This participation rate will be guaranteed to never be less than 5%. If the Barclays US Dynamic Balance Index II options are chosen, Allianz will establish the participation rate on each policy anniversary. This participation rate will be guaranteed to never be less than 5% for the higher participation option, and never less than 5% for the annual floor option. Caps The amount of indexed interest the policy can earn may be limited by a cap. For current caps and participation rates, please refer to the Allianz Life Rate Watch, which can be found at www.allianzlife.com or by calling the Life Case Design Team at 800.950.7372. Fixed interest allocation Your clients may also select fixed interest for all or a portion of their policy values. The fixed interest rate is guaranteed to never be less than 0.%. In Oregon and Pennsylvania, the minimum guaranteed fixed interest rate is 2%. Accumulation bonus A guaranteed annual bonus of 0.6% will be credited to the policy s accumulation value starting in policy year. The bonus will be credited to the accumulation value starting on the first monthly anniversary after the 0 th policy anniversary and every monthly anniversary thereafter. Policy expenses and charges All of these charges end at insured s age 20: Insurance cost charge: Based on factors such as age, gender, and risk class. Monthly policy charge: A policy charge of $7.50 per policy will be deducted every month on the monthly anniversary. Premium charge: A premium charge of 5% will be deducted as premium is paid into the policy. Monthly expense charge: An expense charge based on a percentage of the specified amount will be deducted every month on the monthly anniversary and is based on age, gender, death benefit amount, and risk class. Surrender charge: 0-year decreasing surrender charge based on age, gender, death benefit amount, and risk class. Rider charges may also apply. 6 Page 8 of 6
Optional riders (Rider terms, conditions, and availability may vary by state.) Offer your clients optional riders with THE TYPE OF PROTECTION that fits their needs. Inflation Protection Rider This rider provides a way to protect the purchasing power of your clients loan amount from being reduced by inflation. The Inflation Protection Rider is based on the Consumer Price Index for Urban Areas, U.S. City Average (unadjusted) (CPI-U). At the time they decide to take a policy loan, they can choose to exercise this rider. Once exercised, this rider may provide an annual credit to the policy based on positive changes in the CPI-U index. The rider can be exercised with any of the loan options available on or after the first policy anniversary. Waiver of Specified Premium Rider 2 If the insured is totally disabled for at least six months (under the terms of the policy) prior to their 65 th birthday, we ll credit the policy with the waiver amount the policyholder has specified. The policyholder can specify the amount of premium they would like to waive, with a minimum of $25 per month. The maximum is $50,000 per year, or two times the minimum annual premium, whichever is less. Receipt of benefits under this rider does not guarantee that the policy will remain in force. Enhanced Liquidity Rider (ELO) 2,3 This rider waives 50% or 00% of the surrender charges, which can provide greater access to any available cash value in the policy s early years. Issue age for this rider: 0-80 Rider available with substandard risk classes Not available with the Enhanced Cash Value Rider Rider cannot be canceled once the policy is issued, unless it is in the free-look period. First-year compensation for policies with this rider is spread over a six-year schedule. Refer to your commission schedule for details. Rider expires on the last day of the 0 th policy year, when the surrender period is over. Issue age for this rider: 8-60 Rider not available with substandard risk classes or flat extra rating Not available with the Enhanced Cash Value Rider Rider is commissionable. Rider can be canceled at any time. Additional cost when rider is exercised. The rider cost is based on age, gender, risk class, and policy duration. 2 Additional cost at time of issue. 3 An agent who has a contract with commission advancing will not receive advance commissions on policies with ELO or ECVR. 7 Page 9 of 6
Enhanced Cash Value Rider (ECVR),2 This rider provides an enhanced cash value in the policy s first nine years. It guarantees a return of a percentage of the total premium paid during this period. Issue age for this rider: 0-60 Table of enhanced cash value percentages The guaranteed return of premium percentage is as follows: Policy year Percentage 95% 2 95% 3 90% 4 85% 5 80% 6 75% 7 70% 8 65% 9 60% There is an additional charge for this rider over the nine years the benefit is in effect. First-year compensation for policies with this rider is spread over a five-year schedule. Refer to your commission schedule for details. We reserve the right to review and limit large cases. Additional Term Rider With this rider, the policyholder may add extra term insurance. The amount of extra coverage is based on a proportion of the original policy s death benefit. This rider may be a good fit if the policyholder needs a large amount of life insurance (for a finite period), but wants to keep the cost of insurance down. Issue age for this rider: 0-80 Rider available with substandard risk classes Not available with the Enhanced Cash Value Rider The minimum amount of the Additional Term Rider is $25,000. The maximum amount of the Additional Term Rider is six times the base policy s specified amount. The combined death benefit cannot exceed $65,000,000. This rider is not convertible and may be canceled at any policy anniversary date. This rider is not commissionable. Not available with substandard risk classes Not available with any other riders, except Loan Protection Rider Policies must be funded at maximum non-mec (modified endowment contract) limits, unless limited by guideline premium rules. Additional cost at time of issue. 8 2 An agent who has a contract with commission advancing will not receive advance commissions on policies with ELO or ECVR. Page 0 of 6
Other Insured Term Rider The policyholder can add term insurance for up to four people other than the primary insured, for as much as four times the base policy s specified amount, while continuing to build their policy s cash value. Coverage can stay in effect to age 00 for each additional insured. This rider provides low-cost term insurance for other family members or business partners. Issue age for this rider: 0-80 Not available with the Enhanced Cash Value Rider Maximum rider specified amount of all lives covered is the lesser of four times the specified amount of the base policy, or $,000,000 (whichever is less). This rider is not convertible. Rider can be canceled at any time. Rider can be added at a later time, subject to underwriting. Long Term Care Accelerated Benefit Rider This rider may be a good fit if the policyholder wants to prepare for the possibility of needing long term care down the road, and likes the idea that someone either themselves, or their beneficiaries will benefit from their policy. The maximum monthly benefit under this rider cannot exceed $0,000 per month. Issue age for this rider: 0-75 Not available with the Enhanced Cash Value Rider Not available with the Chronic Illness Accelerated Benefit Rider The benefit is up to 4% of the eligible amount per month. The percentage is selected by the policyholder at policy application and is shown on the policy schedule page. The eligible amount is the lesser of: The rider specified amount indicated on policy schedule The current specified amount of the base policy plus any additional term rider s rider specified amount less any policy loans, or $,000,000 Rider is only available in CT, FL, MD, and MN. Additional cost at time of issue. 9 Page of 6
Child Term Rider,2 This rider provides affordable term insurance to insure the insured s children who are at least 5 days old but not yet 2 years old on the date the rider provides coverage, up to $0,000. Issue age of insured: up to age 60 Issue age of the child: 5 days-2 years This rider is fully convertible to an Allianz cash value policy, without additional underwriting, on the earliest of the following dates: The policy anniversary when the child is 25 The policy anniversary when the insured is 65 The death of the insured if prior to age 65 Also, if the above dates have not occurred, and a child has been covered under this rider for 0 years, this rider can be converted to an Allianz cash value policy. Not available with the Enhanced Cash Value Rider Rider can be added at the policy anniversary following the birth or adoption of the insured individual s first child, without additional underwriting. Loan Protection Rider 3 This rider can prevent the unintentional lapse of your client s policy while there is an outstanding policy loan, if they are between the ages of 75 and 00. We ll notify the policyholder if the loan balance reaches 90% of their policy s accumulation value. The rider is automatically added to the policy when it is issued. The policyholder has the opportunity to opt out of the rider on the illustration. There is no charge if the policyholder does not exercise this rider. Once exercised, there is a onetime charge, which is a percentage of the accumulation value. This rider may be suitable for your clients if they plan on using their available cash value during their retirement years (i.e., deferred compensation plan). The rider cannot be elected or used if the policy is a modified endowment contract (MEC). This rider cannot be added after policy issue. Issue age for this rider: 0-80 Not available with the cash value accumulation test Once you have opted out of the rider, it cannot be added to your policy at a later date. May not be available in all states. Additional cost at time of issue. 2 For Texas, rider is available to children younger than 2 years, on the date the rider provides coverage to the child. 0 3 This policy may be purchased with the intention of building cash value on a tax-free basis for some period (such as, until retirement) and then periodically borrowing from the policy without allowing the policy to lapse. The aim of this strategy is to continue borrowing from the policy until its contract value is just enough to pay off the policy loans that have been taken out, and then relying on the Loan Protection Rider to keep the policy in force until the death of the insured. Anyone contemplating taking advantage of this strategy should be aware that it involves significant risk. This strategy has not been ruled on by the Internal Revenue Service (the IRS ) or the courts and it may be subject to challenge by the IRS on the grounds that the policy has effectively lapsed or been exchanged. It is thus possible that loans under this policy may be treated as taxable distributions when the rider is exercised. In that event, assuming policy loans have not already been subject to tax as distributions, a significant tax liability could arise. Anyone considering using the policy as a source of tax-free income by taking out policy loans should, before purchasing the policy, consult with and rely on a competent tax advisor about the tax risks inherent in such a strategy. This rider is automatically added to policies issued with the guideline premium test (GPT) only. Page 2 of 6
Help clients choose carefully and confidently. No single crediting method (or index) is the most effective in every situation, so your clients should consider their options before they make a choice. Remember that they can change their allocations on each policy anniversary, if they wish. No matter which index allocation option your clients choose, their locked-in cash value is protected. If the market dips, they may not receive indexed interest but their policy s cash value won t go down, although fees and charges will reduce the cash value. For more information on Allianz Life Pro+, call the Life Case Design Team at 800.950.7372 (press for Sales Support, then 2 for Life). It s just as important to make sure clients know that their policy guarantees are backed by the financial strength of Allianz, a company distinguished by our stability, strong balance sheet, and consistently high ratings from independent rating agencies, including Moody s and Standard & Poor s. Page 3 of 6
Index disclosures The S&P 500 Index is comprised of 500 stocks representing major U.S. industrial sectors. The Dow Jones Industrial Average is a popular indicator of the stock market based on the average closing prices of 30 active U.S. stocks representative of the overall economy. S&P is a registered trademark of Standard & Poor s Financial Services LLC ( S&P ) and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC ( Dow Jones ). These trademarks have been licensed for use by S&P Dow Jones Indices LLC. S&P marks are trademarks of S&P and Dow Jones marks are trademarks of Dow Jones. These trademarks have been sublicensed for certain purposes by Allianz Life Insurance Company of North America ( Allianz ). The S&P 500 Index ( the Index ) and Dow Jones Industrial Average SM ( the DJIA ) are products of S&P Dow Jones Indices LLC and/or its affiliates and have been licensed for use by Allianz. Allianz products are not sponsored, endorsed, sold, or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or any of their respective affiliates (collectively, S&P Dow Jones Indices ). S&P Dow Jones Indices make no representation or warranty, express or implied, to the owners of the Allianz products or any member of the public regarding the advisability of investments generally or in Allianz products particularly or the ability of the Index and Average to track general market performance. S&P Dow Jones Indices only relationship to Allianz with respect to the Index and Average is the licensing of the Index and Average and certain trademarks, service marks, and/or trade names of S&P Dow Jones Indices and/or its thirdparty licensors. The Index and Average are determined, composed, and calculated by S&P Dow Jones Indices without regard to Allianz or the products. S&P Dow Jones Indices have no obligation to take the needs of Allianz or the owners of the products into consideration in determining, composing, or calculating the Index and Average. S&P Dow Jones Indices are not responsible for and have not participated in the design, development, pricing, and operation of the products, including the calculation of any interest payments or any other values credited to the products. S&P Dow Jones Indices have no obligation or liability in connection with the administration, marketing, or trading of products. There is no assurance that investment products based on the Index and Average will accurately track index performance or provide positive investment returns. S&P Dow Jones Indices LLC and its subsidiaries are not investment advisors. Inclusion of a security or futures contract within an index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security or futures contract, nor is it considered to be investment advice. Notwithstanding the foregoing, CME Group Inc. and its affiliates may independently issue and/or sponsor financial products unrelated to products currently being issued by Allianz, but which may be similar to and competitive with Allianz products. In addition, CME Group Inc., an indirect minority owner of S&P Dow Jones Indices LLC, and its affiliates may trade financial products which are linked to the performance of the Index and Average. It is possible that this trading activity will affect the value of the products. S&P DOW JONES INDICES DO NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS, AND/OR THE COMPLETENESS OF THE INDEX AND AVERAGE OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P DOW JONES INDICES SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIM ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY ALLIANZ, OWNERS OF THE PRODUCTS, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE INDEX AND AVERAGE OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME, OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. THERE ARE NO THIRD-PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND ALLIANZ OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES. The EURO STOXX 50, Europe s leading Blue-chip index for the Eurozone, provides a blue-chip representation of supersector leaders in the Eurozone. The index covers 50 stocks from 2 Eurozone countries: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain. The EURO STOXX 50 is the intellectual property (including registered trademarks) of STOXX Limited, Zurich, Switzerland. Allianz products based on the Index is in no way sponsored, endorsed, sold or promoted by STOXX and shall not have any liability with respect thereto. The Russell 2000 Index is an equity index that measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which is made up of 3,000 of the biggest U.S. stocks. The Russell 2000 Index is constructed to provide a comprehensive and unbiased small-cap barometer and is completely reconstituted annually to ensure larger stocks do not affect the performance and characteristics of the true small-cap index. The Russell 2000 Index is a trademark of Russell Investments and has been licensed for use by Allianz Life Insurance Company of North America. Allianz products are not sponsored, endorsed, sold or promoted by Russell Investments and Russell Investments makes no representation regarding the advisability of investing in Allianz products. The Barclays US Dynamic Balance Index II is comprised of the US Aggregate RBI Series Index and the S&P 500 Index and shifts weighting daily, up to 3%, between them based on realized market volatility. The Barclays US Aggregate RBI Series Index is comprised of a portfolio of derivative instruments plus cash that are designed to track the Barclays US Aggregate Bond Index. The Barclays US Aggregate Bond Index is comprised of U.S. investment-grade, fixed-rate bond market securities, including government, agency, corporate, and mortgage-backed securities. Barclays Risk Analytics and Index Solutions Limited and its affiliates ( Barclays ) is not the issuer or producer of any Allianz products and Barclays has no responsibilities, obligations or duties to investors in respect of any Allianz products. The Barclays US Aggregate Bond Index, the Barclays US Aggregate RBI Series Index and the Barclays US Dynamic Balance Index II are trademarks owned by Barclays, and the Barclays 2 Page 4 of 6
US Aggregate Bond Index and Barclays US Dynamic Balance Index II are licensed for use by Allianz Life Insurance Company of North America ( Allianz ) as the Issuer of Allianz products. Barclays only relationship with the Issuer in respect of the Barclays US Aggregate Bond Index, the Barclays US Aggregate RBI Series Index and the Barclays US Dynamic Balance Index II is the licensing of the Barclays US Aggregate Bond Index and the Barclays US Dynamic Balance Index II, which are determined, composed and calculated by Barclays, or any successor thereto, without regard to the Issuer or any Allianz product or the owners of any Allianz products. Additionally, while Allianz may for itself execute transaction(s) with Barclays in or relating to the Barclays US Aggregate Bond Index, the Barclays US Aggregate RBI Series Index or the Barclays US Dynamic Balance Index II in connection with Allianz products, investors acquire Allianz products from Allianz Life Insurance Company of North America and investors neither acquire any interest in the Barclays US Aggregate Bond Index, the Barclays US Aggregate RBI Series Index or the Barclays US Dynamic Balance Index II nor enter into any relationship of any kind whatsoever with Barclays upon making an investment in any Allianz product. The Allianz products are not sponsored, endorsed, sold or promoted by Barclays. Barclays does not make any representation or warranty, express or implied regarding the advisability of investing in any Allianz product or the advisability of investing in securities generally or the ability of the Barclays US Aggregate Bond Index, the Barclays US Aggregate RBI Series Index or the Barclays US Dynamic Balance Index II to track corresponding or relative market performance. Barclays has not passed on the legality or suitability of any Allianz product with respect to any person or entity. Barclays is not responsible for and has not participated in the determination of the timing of, prices at, or quantities of any Allianz products to be issued. Barclays has no obligation to take the needs of the Issuer or the owners of any Allianz product or any other third party into consideration in determining, composing or calculating the Barclays US Aggregate Bond Index, the Barclays US Aggregate RBI Series Index or the Barclays US Dynamic Balance Index II. Barclays has no obligation or liability in connection with administration, marketing or trading of any Allianz product. The licensing agreement between Allianz Life Insurance Company of North America and Barclays is solely for the benefit of Allianz Life Insurance Company of North America and Barclays and not for the benefit of the owners of the Allianz products, investors or other third parties. BARCLAYS SHALL HAVE NO LIABILITY TO THE ISSUER, INVESTORS OR TO OTHER THIRD PARTIES FOR THE QUALITY, ACCURACY AND/OR COMPLETENESS OF THE BARCLAYS US AGGREGATE BOND INDEX, THE BARCLAYS US AGGREGATE RBI SERIES INDEX OR THE BARCLAYS US DYNAMIC BALANCE INDEX II OR ANY DATA INCLUDED THEREIN OR FOR INTERRUPTIONS IN THE DELIVERY OF THE BARCLAYS US AGGREGATE BOND INDEX, THE BARCLAYS US AGGREGATE RBI SERIES INDEX OR THE BARCLAYS US DYNAMIC BALANCE INDEX II. BARCLAYS MAKES NO WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY THE ISSUER, THE INVESTORS OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE BARCLAYS US AGGREGATE BOND INDEX, THE BARCLAYS US AGGREGATE RBI SERIES INDEX OR THE BARCLAYS US DYNAMIC BALANCE INDEX II OR ANY DATA INCLUDED THEREIN. BARCLAYS MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND HEREBY EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE BARCLAYS US AGGREGATE BOND INDEX, THE BARCLAYS US AGGREGATE RBI SERIES INDEX OR THE BARCLAYS US DYNAMIC BALANCE INDEX II OR ANY DATA INCLUDED THEREIN. BARCLAYS RESERVES THE RIGHT TO CHANGE THE METHODS OF CALCULATION OR PUBLICATION, OR TO CEASE THE CALCULATION OR PUBLICATION OF THE BARCLAYS US AGGREGATE BOND INDEX, THE BARCLAYS US AGGREGATE RBI SERIES INDEX OR THE BARCLAYS US DYNAMIC BALANCE INDEX II, AND BARCLAYS SHALL NOT BE LIABLE FOR ANY MISCALCULATION OF OR ANY INCORRECT, DELAYED OR INTERRUPTED PUBLICATION WITH RESPECT TO ANY OF THE BARCLAYS US AGGREGATE BOND INDEX, THE BARCLAYS US AGGREGATE RBI SERIES INDEX OR THE BARCLAYS US DYNAMIC BALANCE INDEX II. BARCLAYS SHALL NOT BE LIABLE FOR ANY DAMAGES, INCLUDING, WITHOUT LIMITATION, ANY SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES, OR ANY LOST PROFITS AND EVEN IF ADVISED OF THE POSSIBILITY OF SUCH, RESULTING FROM THE USE OF THE BARCLAYS US AGGREGATE BOND INDEX, THE BARCLAYS US AGGREGATE RBI SERIES INDEX OR THE BARCLAYS US DYNAMIC BALANCE INDEX II OR ANY DATA INCLUDED THEREIN OR WITH RESPECT TO THE ALLIANZ PRODUCT. None of the information supplied by Barclays Risk Analytics and Index Solutions Limited and used in this publication may be reproduced in any manner without the prior written permission of Barclays Risk Analytics and Index Solutions Limited. Barclays Risk Analytics and Index Solutions Limited is registered in England No. 08934023. Page 5 of 6
True to our promises so you can be true to yours. A leading provider of annuities and life insurance, Allianz Life Insurance Company of North America (Allianz) bases each decision on a philosophy of being true: True to our strength as an important part of a leading global financial organization. True to our passion for making wise investment decisions. And true to the people we serve, each and every day. Through a line of innovative products and a network of trusted financial professionals, and with over 2.2 2.6 million contracts issued, Allianz helps millions people of as people they seek as they to achieve seek to their achieve financial their and financial retirement and retirement goals. Founded goals. in Founded 896, in Allianz 896, is Allianz proud is to proud play a to vital play role a vital in the role success in the success of our global of our parent, global Allianz parent, SE, Allianz one of the SE, one world s of the largest world s financial largest services financial companies. services companies. While we pride ourselves on our financial strength, we re made of much more than our balance sheet. We believe in making a difference with our clients by being true to our commitments and keeping our promises. People rely on Allianz today and count on us for tomorrow when they need us most. Guarantees are backed solely by the financial strength and claims-paying ability of Allianz Life Insurance Company of North America. For financial professional use only not for use with the public. Product and feature availability may vary by state. www.allianzlife.com Products are issued by: Allianz Life Insurance Company of North America 570 Golden Hills Drive Minneapolis, MN 5546-297 800.950.7372 P54350 (R-7/205) Page 6 of 6